U.S. vows 100% tariffs on French Champagne, cheese, handbags over digital tax

[webfact]

U.S. vows 100% tariffs on French Champagne, cheese, handbags over digital tax

By David Lawder and Andrea Shalal

 

FILE PHOTO: An employee serves a glass of Champagne during the traditional wine harvest at the Champagne house Deutz in Ay, France, September 22, 2016. REUTERS/Benoit Tessier/File Photo

 

WASHINGTON (Reuters) - The U.S. government on Monday said it may slap punitive duties of up to 100% on $2.4 billion in imports of French Champagne, handbags, cheese and other products, after concluding that France's new digital services tax would harm U.S. tech companies.

 

The U.S. Trade Representative's office said its "Section 301" investigation found that the French tax was "inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected U.S. companies", including Alphabet Inc's Google <GOOGL.O>, Facebook Inc <FB.O>, Apple Inc <AAPL.O> and Amazon.com Inc <AMZN.O>.

 

U.S. Trade Representative Robert Lighthizer said the U.S. government was also exploring whether to open similar investigations into the digital services taxes of Austria, Italy and Turkey.

 

"The USTR is focused on countering the growing protectionism of EU member states, which unfairly targets U.S. companies, whether through digital services taxes or other efforts that target leading U.S. digital services companies."

 

The trade agency said it would collect public comments on its proposed tariff list through Jan. 14 and hold a public hearing on Jan. 7. It did not specify an effective date for the proposed 100% duties.

 

The list targets some products that were spared from 25% tariffs imposed by the United States over disputed aircraft subsidies, including sparkling wines, handbags and make-up preparations - products that would hit French luxury goods giant LVMH <LVMH.PA> and cosmetics maker L'Oreal <OREP.PA> hard.

 

The findings won favor from U.S. lawmakers and U.S. tech industry groups.

 

"The French digital services tax is unreasonable, protectionist and discriminatory," Senators Charles Grassley and Ron Wyden, the top Republican and Democrat, respectively, on the Senate Finance Committee, said in a joint statement.

 

A spokeswoman for the French embassy in Washington could not immediately be reached for comment.

 

(Reporting by Andrea Shalal And David Lawder; Editing by Leslie Adler and Lisa Shumaker)

 

-- © Copyright Reuters 2019-12-03

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[keith101]

More childish tit for tat <deleted> from the US .

[OneMoreFarang]

So every American with a good taste has to pay 100% more.

Yeah, MAGA. 555

[Cryingdick]

47 minutes ago, OneMoreFarang said:

So every American with a good taste has to pay 100% more.

Yeah, MAGA. 555

 

Yeah there are going to be a lot of Chardonnay socialists crying about this. 

[Tug]

Donald can’t afford to <deleted> off big tec so close to the election he needs their help

[Somtamnication]

Sparkling wine and English cheese is better, anyway!

[HuskerDo]

3 minutes ago, Tug said:

Really?just what has he negotiated?

A few things. A new agreement with Mexico and Canada for one thing but I never mentioned HIS negotiations. Read my msg again. I noted that those that came before him were sad negotiators. 

[nkg]

I am no fan of Trump's trade negotiations, but nobody seems to mention that the US is collecting a lot of tax money on the back of tariffs.

 

The US collected $7 Billion in September, which would equate to an annual total of over $80 Billion by September 2020.

Edited December 3, 2019 by nkg
Brexit

[otherstuff1957]

In this case it sounds as though the US is doing the right thing for the wrong reasons.  I believe that access to information is our most important freedom.  When countries begin to impose digital taxes, they are taking the first steps toward controlling freedom of information on the internet.

 

However, the US is not defending freedom, they are defending the profits of giant companies who will 'thank' the US government by hiding their profits offshore to reduce the amount of US taxes they pay.

[Cryingdick]

8 minutes ago, otherstuff1957 said:

In this case it sounds as though the US is doing the right thing for the wrong reasons.  I believe that access to information is our most important freedom.  When countries begin to impose digital taxes, they are taking the first steps toward controlling freedom of information on the internet.

 

However, the US is not defending freedom, they are defending the profits of giant companies who will 'thank' the US government by hiding their profits offshore to reduce the amount of US taxes they pay.

 

It's just retaliation to the French for a money grab as they have run out of things to tax. The funny thing is the items attracting the tariffs are luxury items for rich people. All of a sudden the lefties have found a tax on the wealthy they don't like. The price of sitting around drinking French wine and hating on America just got more expensive. 

 

Trump couldn't put a tariff on European technology because they do not have anywhere near the list of innovative companies the USA has. 

 

Why anybody would care if Trump taxes items that mostly elitists purchase is beyond me. 

Edited December 3, 2019 by Cryingdick

[HuskerDo]

11 minutes ago, nkg said:

I am no fan of Trump or his trade negotiations, but nobody seems to mention that the US is collecting a lot of tax money on the back of tariffs.

 

The US collected $7 Billion in September, which would equate to an annual total of over $80 Billion by September 2020.

Good point and for all those that were screaming that the tariffs would be an undue "burden" on the US taxpayer it appears that isn't true and Walmart and Target are making lots of money and their stock price is reflecting it. Any other politician would have folded and not implemented the tariffs but Trump saw right thru that argument. Well done Mr. Prez!!

Edited December 3, 2019 by HuskerDo

[HuskerDo]

1 minute ago, Cryingdick said:

 

It's just retaliation to the French for a money grab as they have run out of things to tax. The funny thing is the items attracting the tariffs are luxury items for rich people. All of a sudden the lefties have found a tax on the wealthy they don't like. The price of sitting around drinking French wine and hating on America just got more expensive. 

 

Why anybody would care if Trump taxes items that mostly elitists purchase is beyond me. 

Well said young man!!

[sharecropper]

Anyone who believes Trump has done anything positive for the US on the world stage is delusional. This incompetent moron has to go before he drags your country further below North Korea and other idiot-run Rogue States.

[Rookiescot]

2 minutes ago, Cryingdick said:

 

It's just retaliation to the French for a money grab as they have run out of things to tax. The funny thing is the items attracting the tariffs are luxury items for rich people. All of a sudden the lefties have found a tax on the wealthy they don't like. The price of sitting around drinking French wine and hating on America just got more expensive. 

 

Trump couldn't put a tariff on European technology because they do not have anywhere near the list of innovative companies the USA has. 

 

Why anybody would care if Trump taxes items that mostly elitists purchase is beyond me. 

Dont think its the items in question thats the issue.

Its the fact that Trump is once again using a sledgehammer to crack a walnut.

If the EU reciprocates (which it has every right to do) then companies on both sides of the Atlantic will suffer. 

 

How would you feel if the EU introduced tariffs on the United States because somewhere like California had introduced a new tax?

[Scott]

Off-topic posts and replies removed.   Stay on topic, which is tariffs on French products.  

 

[Cryingdick]

2 minutes ago, Rookiescot said:

Dont think its the items in question thats the issue.

Its the fact that Trump is once again using a sledgehammer to crack a walnut.

If the EU reciprocates (which it has every right to do) then companies on both sides of the Atlantic will suffer. 

 

How would you feel if the EU introduced tariffs on the United States because somewhere like California had introduced a new tax?

 

It all goes back to Airbus being subsidized unfairly. The USA challenged it through the proper channels and won. Your example of California isn't meaningful California is the USA. 

[HuskerDo]

2 minutes ago, Rookiescot said:

Dont think its the items in question thats the issue.

Its the fact that Trump is once again using a sledgehammer to crack a walnut.

If the EU reciprocates (which it has every right to do) then companies on both sides of the Atlantic will suffer. 

 

How would you feel if the EU introduced tariffs on the United States because somewhere like California had introduced a new tax?

The US economy is BY FAR the strongest in the world and it's due to one thing..... Trump. He has leverage and will continue to use it. French cheese and French wine isn't for the average American anyway and that's who Trump is sticking up for. The average American is more of a Joe Sixpack. Let the EU introduce as many tariffs as they want and see if they come out the winner.

[Rookiescot]

7 minutes ago, Cryingdick said:

 

It all goes back to Airbus being subsidized unfairly. The USA challenged it through the proper channels and won. Your example of California isn't meaningful California is the USA. 

France is in the EU.

California is in the USA.

So my example of the EU introducing tariffs is perfectly valid.

Did you not know France was is in the EU?  

[Cryingdick]

3 minutes ago, HuskerDo said:

The US economy is BY FAR the strongest in the world and it's due to one thing..... Trump. He has leverage and will continue to use it. French cheese and French wine isn't for the average American anyway and that's who Trump is sticking up for. The average American is more of a Joe Sixpack. Let the EU introduce as many tariffs as they want and see if they come out the winner.

 

Many Americans especially millennials are moving away from beer. However the USA has been winning the lion's share of international competitions for wine which involve French judges. If I am in France then sure French wine it is because it is very very cheap there. However the French do nothing that isn't replicated or bested by what Napa is producing.

 

Same with beer it used to be Germany and now there are so many American companies producing beer that is at par or superior for less money. 

 

There has also been a renaissance in cheese making in the USA. Most supermarkets will have a section of artisan cheeses. There is a place in town that only sells French cheese and wine. A pound of French cheese costs around $25. You get the same thing here for around $10 a pound made locally. Making soft cheese isn't that hard to do, pardon the pun.

 

The USA can't make taxes on tech reciprocal because the French do not have one tech company that is even meaningful. Try it name American tech... Google, Adobe, Salesforce, Microsoft, Amazon, Apple, Twilio, Uber, etc. I can name a French company because my husband works for them their client here is Fed Ex. That's Atos Syntel. Germany has SAP but after that you would be hard pressed to name more than a handful of European tech companies.

[HuskerDo]

3 minutes ago, Cryingdick said:

 

Many Americans especially millennials are moving away from beer. However the USA has been winning the lion's share of international competitions for wine which involve French judges. If I am in France then sure French wine it is because it is very very cheap there. However the French do nothing that isn't replicated or bested by what Napa is producing.

 

Same with beer it used to be Germany and now there are so many American companies producing beer that is at par or superior for less money. 

 

There has also been a renaissance in cheese making in the USA. Most supermarkets will have a section of artisan cheeses. There is a place in town that only sells French cheese and wine. A pound of French cheese costs around $25. You get the same thing here for around $10 a pound made locally. Making soft cheese isn't that hard to do, pardon the pun.

 

The USA can't make taxes on tech reciprocal because the French do not have one tech company that is even meaningful. Try it name American tech... Google, Adobe, Salesforce, Microsoft, Amazon, Apple, Twilio, Uber, etc. I can name a French company because my husband works for them their client here is Fed Ex. That's Atos Syntel. Germany has SAP but after that you would be hard pressed to name more than a handful of European tech companies.

I didn't mean "Joe Sixpack" in the sense the average American drank beer but rather they don't desire "foo-foo" things like French wine and cheese. All your points are valid.

[Cryingdick]

1 minute ago, HuskerDo said:

I didn't mean "Joe Sixpack" in the sense the average American drank beer but rather they don't desire "foo-foo" things like French wine and cheese. All your points are valid.

 

Yeah inviting the gang around for fondue is a 70s thing and a tad tacky.

Edited December 3, 2019 by Cryingdick

[Credo]

3 minutes ago, Cryingdick said:

 

Yeah inviting the gang around for fondue is a 70s thing and a tad tacky.

Fondue is Swiss, not French.   Surely they will leave Swiss cheese alone?

 

[Cryingdick]

2 minutes ago, Credo said:

Fondue is Swiss, not French.   Surely they will leave Swiss cheese alone?

 

 

What I was implying is that many things from Europe are no longer in vogue or the height of trendiness. Europe no longer makes anything you can't obtain here that's made here. Fondue you will find is a French word.  You understand parts of Switzerland are French right? 

[Credo]

5 minutes ago, Cryingdick said:

 

What I was implying is that many things from Europe are no longer in vogue or the height of trendiness. Europe no longer makes anything you can't obtain here that's made here. Fondue you will find is a French word.  You understand parts of Switzerland are French right? 

Yes, having worked in one country and spent considerable time in the other.   I do understand a bit about it.   

 

[sammieuk1]

Anyone having their vintage Champers poured out by a geezer in white gloves will be unaffected ????

[Thian]

2 hours ago, OneMoreFarang said:

So every American with a good taste has to pay 100% more.

Yeah, MAGA. 555

Well they can also buy California cheese....much cheaper and lasts forever.

[bristolboy]

1 hour ago, nkg said:

I am no fan of Trump's trade negotiations, but nobody seems to mention that the US is collecting a lot of tax money on the back of tariffs.

 

The US collected $7 Billion in September, which would equate to an annual total of over $80 Billion by September 2020.

And given that in effect it's a consumption tax  it's the poor and middle class that are disproportionately paying for it.

[bristolboy]

57 minutes ago, Cryingdick said:

 

It's just retaliation to the French for a money grab as they have run out of things to tax. The funny thing is the items attracting the tariffs are luxury items for rich people. All of a sudden the lefties have found a tax on the wealthy they don't like. The price of sitting around drinking French wine and hating on America just got more expensive. 

 

Trump couldn't put a tariff on European technology because they do not have anywhere near the list of innovative companies the USA has. 

 

Why anybody would care if Trump taxes items that mostly elitists purchase is beyond me. 

Actually, this is about tax avoidance and how international corporations through creative bookkeeping falsely credit profits to where taxes are low. But of course, that's the kind activity that Republicans endorse and enable.

[bristolboy]

40 minutes ago, Cryingdick said:

 

It all goes back to Airbus being subsidized unfairly. The USA challenged it through the proper channels and won. Your example of California isn't meaningful California is the USA. 

Yes, it was ruled that the Europeans were subsidizing Airbus unfairly. What you don't mention is that the US was also found to be doing that for its aerospace industry.. The amount of the judgement is awaiting a ruling.

[Rookiescot]

8 minutes ago, Cryingdick said:

 

California can not impose tariffs. They are not a sovereign country.

What are you talking about? Go back and read my posts again.

In my example I said "how would you feel if the EU introduced tariffs on the United States because California had introduced a new tax"?

 

 

Is it now up to the USA to decide what sovereign countries can do with their own tax rates? Trump now owns the entire planet?

 

 

Trump has also introduced tariffs on Scotch whisky. Why? Because he lost a court case in Scotland.